BTL DSCR Calculator
Calculate Debt Service Coverage Ratio and Interest Coverage Ratio for BTL mortgages. Check if your rental income meets lender requirements for buy-to-let mortgages.
Property & Loan Details
Rental Income
Borrower Details
Fails Lender Stress Test
ICR at 5.5%: 0.0% | Required: 145.0%
Options to pass:
- • Reduce loan to £0
- • Increase rent to £0/month
- • Add larger deposit (£0 more)
Common Lender Requirements
| Borrower Type | ICR | Stress Rate | Notes |
|---|---|---|---|
| Standard BTL (Basic Rate) | 125% | 5.5% | Basic rate taxpayers, limited companies |
| Standard BTL (Higher Rate) | 145% | 5.5% | Higher/additional rate taxpayers |
| Portfolio Landlord (4+ props) | 145% | 5.5% | Landlords with 4+ mortgaged properties |
| HMO/MUFB | 145% | 5.5% | HMOs and Multi-Unit Freehold Blocks |
| Holiday Let | 145% | 5.5% | Furnished Holiday Lets |
Requirements vary by lender. Some lenders may use different stress rates or ICR calculations.
Coverage Ratios
0.0%
At 5.5% rate
0.0%
At 5.5% stress rate
0.00
Net rent / debt service
0.00x
Rent ÷ interest payment
Loan Summary
0.0%
£0
£0
At 5.5%
£0
At 5.5%
Maximum Borrowing
£0
At 145% ICR
£0
Enter your property details above to see AI-powered analysis and recommendations for your BTL DSCR/ICR calculation.
About the BTL DSCR Calculator
What it does and how it helps you
The BTL DSCR Calculator helps UK landlords calculate Debt Service Coverage Ratio and Interest Coverage Ratio for buy-to-let mortgages. These metrics are critical for securing BTL finance, as lenders use them to assess whether rental income adequately covers mortgage payments. Our calculator shows you if your rental income meets lender affordability requirements.
How It Works
Understanding the calculation method
The DSCR and ICR calculations assess mortgage affordability for BTL properties: **Interest Coverage Ratio (ICR)**: ICR = (Annual Rent ÷ Annual Interest) × 100. Most UK BTL lenders require an ICR of 125-145% calculated at a stress test rate (typically 5.5%). This means your rent must be 125-145% of the interest payment at the stressed rate. **Debt Service Coverage Ratio (DSCR)**: DSCR = Net Operating Income ÷ Annual Debt Service. A DSCR above 1.25 indicates healthy cashflow with comfortable margin for unexpected costs. Lower DSCRs may struggle to secure finance or refinance. The calculator applies different ICR requirements based on your tax status: 125% for basic rate taxpayers and limited companies, 145% for higher and additional rate taxpayers due to Section 24 restrictions.
When to use this calculator
Use this calculator when applying for BTL mortgages, remortgaging, or assessing whether a rental property meets lender requirements. It's essential for understanding if your rental income passes lender stress tests before making an offer or approaching lenders.
Frequently Asked Questions
Common questions about this calculator